So Bush's finance minister trying to stop it means nothing? And Democrats specifically promoting the practices also means nothing?
Bush and his finance ministers for the last several years have been routinely stating that the economy is fine and all these naysayers are just chicken littles. NOW, suddenly they've changed their tune and are saying that they've known about and have tried to stop this for years. Ha!
Satire doesn't even come close to how ridiculous this whole farce has become.
Bush has had the Whitehouse for the last 8 years. The secretary of the treasury, the chairman of the federal reserve, and the fella running the SEC are ALL with Bush. He's enjoyed majorities in the congress and the senate for considerable periods throughout those 8 years as well.
But nevermind the fact that this was predicted years ago by reputable economists (Nouriel Roubini hit this nail on the head years ago) but yet they were dismissed as alarmist fools by the folks currently in power.
Then suddenly a few weeks ago the other shoe dropped and suddenly it becomes:
"Even though we're the ones at the wheel and were warned about this years ago, we tried everything in our power to stop it.... oh, and the democrats are entirely to blame for this entire fiasco!!!"
The gestures made by various members of the house and senate to increase regulation were just that, gesures, and most of that regulation was stripped away with much ideological fanfare that it was helping the "free market" by removing the hand of big bad government and all the red tape involved.
There was no serious intent behind regulation otherwise it would have dominated the public discussion. Instead, the congress and senate were too busy passing flag burning ammendments and pontificating about gay marriage and abortion. This wasn't a part of the mainstream discussion because it's a very complicated topic that simply can't be summarized properly into a 30 second sound byte or talking point.
This goes way beyond the easy to understand "po people with no money are ruinin' things" and delves into the mechanics of how banks lend and invest money. This is a world that very few politicians understand. Very few bankers even understand the monster they have created, as was illustrated by the fact that in the last weeks many major firms have had their employees pull all nighters, going through the books to figure out how much capital and debt they did or didn't have. When the banks don't know what their OWN picture is, the market freezes because no one wants to lend to each other.
Currently, Bernanke and Paulson have more power than Bush, the Congress or Senate. And they want more!!!
There are many issues, mostly related to the fact that the banks have been selling lies for years now. BOTH political parties are equally culpable in allowing this to happen, but mostly they allowed this to happen out of ignorance.
How many members of congress, do you think, truly understand the 62 trillion market of CDS? (credit default swaps)?
How many members of congress and the senate understand how CDO's and "structural investment vehicles" funneled billions of dollars in debt to off-book ventures that magically turned into trillions of dollars of nonexistent money???
Very few. I don't even understand it, nor do I pretend to.
Reid was telling the truth when he said "no one knows what to do"